Orchids Paper Products Company plans to build an integrated tissue paper facility in Barnwell, South Carolina

Apr 20, 2015. /Lesprom Network/. Orchids Paper Products Company plans to build an integrated
manufacturing site in Barnwell, South Carolina.The project will include a tissue paper
machine with paper making capacity between 35,000 and 40,000 tons per year and
two converting lines with converting capacity between 30,000 and 32,000 tons
per year, which are capable of producing value through ultra-premium grades of
tissue products, as the company said in the press release received by Lesprom
Network.

The company expects that the total cost of the facility will be
approximately $110 million to $127 million, which will be deployed over the
next two years, with approximately 40% occurring in 2015 and the remainder in
2016 and early 2017.

The Barnwell facility will include a paper machine, a recycling
facility, two converting lines, buildings to house the paper machine and converting
lines and land.The Company expects to
fund this project using the proceeds from a potential follow-on common stock
offering, additional bank borrowings and cash flow from operations.

The Company intends to break ground during the 2Q of this year. Build-out
and start-up of the converting lines will come in phases, with the first line
expected to become operational at the end of 2015 and the second line to become
operational in the 2Q 2016. Engineering and construction of the paper machine
are expected to begin in the 2Q 2015 and it is expected to become operational
in early 2017.

Jeff Schoen, President and CEO, stated, "We anticipate that the
Barnwell facility, in conjunction with our access to structured tissue paper on
the West Coast, will increase our ultra-premium tissue offerings across the
U.S., as well as provide high quality products across our value and premium
offerings. Local and state governmental entities in South Carolina provided strong
economic incentives for the Barnwell project. We anticipate the facility will
employ approximately 130 full time employees."

Orchids Paper Products Company produces a full line of tissue products,
including paper towels, bathroom tissue and paper napkins.